Kazi Zahidul Hasan :
The government’s move to raise gas tariff afresh has drawn flack from citizens, with some questioning the legality and the potential impact of the move, of which the consumers would have to bear the heaviest brunt.
Their reaction came against the backdrop of Bangladesh Energy Regulatory Commission’s (BERC’s) announcement to hold four-day public hearing on gas tariff hike scheduled to begin on 11 March.
Recently, the state-owned gas transmission, distribution and marketing companies have submitted their proposals to BERC seeking for an average 66 per cent hike in natural gas tariff for all types of consumers.
Once the new tariff goes into effect, the price for domestic consumption will be increased by an eye-watering 50 per cent (for double burner gas stove), whereas the industrial consumers will also have to pay 99 per cent per cent more for the utility.
According to the consumers, gas supply remains suspended for several hours daily, already added to their woes. A fresh tariff hike will further worsen their woes with the existing gas shortage problem.
“It is an anti-people move because it would ultimately put an adverse impact on consumers. The hike will push up the overall living expenses of the common man since their income was not increased,” Professor Dr M Shamsul Alam, Energy Adviser to the Consumers’ Association of Bangladesh (CAB) told The New Nation yesterday.
He said, “It could have huge implication on the economy also.”
Opposing the move, he said, if the government is meant to be pro-people, it could not go for such a hike time and again. The government is doing so is only for the interest of a ‘vested quarter’.
When asked, Professor Dr M Shamsul Alam said, “I do not agree with the government’s claim to have the prices increased to cut gas subsidy and blending price mix with imported LNG.”
“The gas sector’s problem lies in the management of distribution loss and gas pilferage. If the government can take bold steps to bring an end to system loss and gas pilferage, it would not require to raise gas tariff again,” he added.
He also suggested that the government should introduce a meter system for every household in Dhaka to prevent ‘rampant’ gas pilferage.
Protesting the BERC’s move to increase gas tariff, Columnist and civil society member Syed Abul Maksud said, “Household consumers are paying high prices for gas though they are deprived of getting uninterrupted supply of the utility. In such situation, raising gas tariff again is irrational.”
He said consumers should get respite from the acute gas crisis first and the government should later think for another tariff hike. “We will organize mass protest programme if the BERC does not stop the public hearing for gas price hike,” said Syed Abul Maksud from a rally in the city on Saturday.
The rally was held in front of the national Press club under the banner of a citizen’s right movement protesting the government’s move to raise gas price again.
“Cooking has become almost an uphill task during daytime because of low supply of gas. When such a situation is prevailing, a fresh gas price hike is unjustified and illegal,” Munira Begum, a housewife and resident of Mohammadpur, told The New Nation.
She said gas price hike would put an additional burden on her family as the prices of everyday essentials and house rents are spiraling almost every year.
“The government has raised salaries of public servants significantly considering rise in cost of living. But how can I afford a fresh rise in utility bills when my salary remains stagnant over the years,” Monir Hossain, who works at a private firm, told The New Nation with utter frustration.
Meanwhile, the industry leaders also opposed the gas distribution companies’ proposal to hike gas tariff afresh saying that such upward readjustment of the utility price would hit the country’s industrial sector, specially textile and garment industry, in a big way.
“The hike in the gas tariff will increase the cost of production, which will end up in making local exportable uncompetitive in global market. The country has already ranked low in international competitive indexes and such decisions will further deteriorate the situation,” Abdus Salam Murshedy, President of the Exporters Association of Bangladesh (EAB) told The New Nation on Saturday.
He also said that the tariff hike is unjustified when the country’s industrial sector, specially export-oriented textile and garment industries, is facing various challenges owing to rising production and labour costs.
“The export-oriented industries are not ready for any kinds of hike in utility bills if we look at their present capacity. Now, they are running with diminishing competitiveness. So, another hike in gas tariff would further erode their competitiveness and thereby put a negative impact on export proceeds,” said Murshedy, adding, “The big impact would be seen on the textile and apparel industry which accounts for over 80 per cent of the country’s total export.”
Murshedy, also a ruling pary lawmaker, further said that the government should properly assess the potential impact on the industry prior to raise the gas tariff. “It will be appreciated if the textile and apparel industries are spared from the gas tariff hike.”
